SBI Home Loan For Construction

A construction loan is a short-term loan used to finance the building or renovation of a home or other real estate project. Moreover, a construction loan is typically disbursed in stages as the project progresses.

Regarding construction loans, the SBI Plot and Construction Loan allows customers to purchase a plot to construct their dwelling units. This specialised loan facility supports the acquisition of land and the financing of house construction.

Customers must complete their respective projects within 3 years. House construction loan by SBI offers a maximum loan amount of up to Rs. 15 crores. Moreover, borrowers are provided with a comfortable repayment period of 10 years.

House Construction Loan SBI

Loan Amount Up to Rs.15 crores
SBI Home Construction Loan Interest Rate Starts at 9.50%
Repayment Tenure Up to 10 years

SBI Construction Loan Interest Rates

SBI house building loan interest rates are considered lucrative for the applying customers. Here is a basic snapshot of SBI home construction loan interest rates.

Loan Type Interest Rate
SBI Construction/Plot Loan Starting from 9.50% 

SBI Construction Loan - Fees & Charges

With processing fees of 0.35%, where the minimum amount is INR 2000, one can expect a charge of up to INR 10,000. Other than that, there are other miscellaneous charges that applicants will have to pay. They are as discussed below:

Fees Pre-Sanction Post-Sanction
Advocate's Services Required for investigation and search report -
Valuer's Services Necessary for valuation report -
Stamp Duty Charges - Apply to the loan agreement
Insurance Charges - Borrower's responsibility
Registration Fees - Covered by the borrower

SBI Construction Loan Eligibility Criteria for Salaried

Following are the eligibility criteria for SBI construction loans for salaried people.

  • Eligibility for the SBI Plot Loan requires the applicant to reside in India. 
  • The age criteria stipulate that applicants must be at least 18 years old and not over 65 years old. 
  • Additionally, the SBI plot loan offers a maximum loan tenure of 10 years. 

SBI Construction Loan Eligibility Criteria for Self-Employed

The applicant, if a proprietor of a proprietorship firm, a partner in a partnership firm, or a director in a company, must ensure the following:

  • The business entity should have been operational for a minimum of three years.
  • It must have reported net profits in the last two years.
  • Any existing credit facilities should be regular and standard, with an opinion report from current bankers.
  • In cases where the proprietor and the proprietary firm jointly acquire the house property, the firm should either be an existing borrower of SBI or a debt-free entity.

SBI Construction Loan Documents Required for Salaried & Self-Employed

The table below showcases the documents required for SBI construction loans for both salaried and self-employed.

Documents Requirements 
Loan Application Form with Photos Fully completed form with 3 passport-size photographs
Proof of Identity (Choose One) PAN, Passport, Driver’s License, or Voter ID card
Proof of Residence/Address (Choose One) Recent Telephone/Electricity/Water/Gas Bill or Passport/Driving License/Aadhar Card
Account Statements Last 6 months' bank account statements for all applicants; Last year's loan account statement (if applicable) from other banks/lenders

Features of SBI Construction Loans

Following are the features of the SBI construction loan.

  • Low Interest Rates: The loans are offered at competitive interest rates, making them an attractive option for borrowers.
  • Low Processing Fee: The processing fees for these loans are kept low, reducing the overall cost of acquiring the loan.
  • No Hidden Charges: Transparency is ensured with no hidden costs involved in the loan process.
  • No Pre-Payment Penalty: Borrowers have the flexibility to prepay their loan without any penalty charges.
  • Repayment Tenure up to 10 Years: The loan offers a maximum repayment period of up to 10 years.
  • Interest Concession for Women Borrowers: Women borrowers can benefit from a concession on the interest rate, supporting affordability and empowerment​​.
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